"Tom brings decades of leadership in the energy industry and distinguished commercial and operational experience to this role. His knowledge of our customers and international experience will add to Thermon's strength in the market and adds depth to our senior management team. We are very excited to welcome Tom to the Thermon family and look forward to his contributions," said Thames.

Mr. Cerovski brings more than 25 years of energy industry leadership experience in positions ranging from engineering, product management, sales, business development, and business unit management. In this role, he will manage the Company's overall commercial organization and also spearhead Thermon's expansion into new geographic and end-use markets, especially with the Company's latest products and solutions. Prior to joining Thermon, Mr. Cerovski held executive positions with General Electric, Wayne Fueling Systems, Dover Fueling Solutions, and Trojan Battery Company. Tom holds a Bachelor of Science from Montana State University, a Master of Science from Purdue University and a Master of Business Administration from George Washington University.

About Thermon

Through its global network, Thermon provides highly engineered thermal solutions, known as heat tracing, for process industries, including energy, chemical processing and power generation. Thermon's products provide an external heat source to pipes, vessels and instruments for the purposes of freeze protection, temperature maintenance, environmental monitoring and surface snow and ice melting. Thermon is headquartered in Austin, Texas. For more information, please visit www.thermon.com.

The Bechtel Supply Chain Recognition Awards celebrate subcontractors and suppliers who have distinguished themselves while supporting Bechtel's work on projects around the world during 2018.

"Working collaboratively with our supply chain is critical for us to deliver successful project for our customers around the world," said Gerry O'Connor, Bechtel's OG&C Manager of Procurement and Contracts. "Working with suppliers that are committed to providing quality products and superior service enables us to provide enhanced outcomes for our customers."

''It is an honor to have been one of the few providers selected from more than 3,000 subcontractors around the world,'' said Bruce Thames, Thermon's President and CEO. ''We pride ourselves on delivering solutions that create differentiated value for our customers. Receiving this award from one of the world's largest EPC firms, working on one of the world's largest ethane units is validation of our efforts. We thank Bechtel for this recognition and look forward to continuing our close relationship.''

Companies were evaluated on multiple factors. They include: overall performance; the ability to deliver quality services/supplies on time; the ability to work collaboratively to meet milestones; and meeting or exceeding project expectations in aspects of safety, construction performance, technical expertise, and environmental compliance. Nominations were reviewed and approved by Bechtel procurement and project managers. Final recommendations were approved by senior leadership and Shell.

Bechtel is one of the most respected global engineering, construction and project management companies. Together with our customers, we deliver landmark projects that foster long-term progress and economic growth. Since 1898, we've completed more than 25,000 extraordinary projects across 160 countries on all seven continents. We operate through four global businesses: Infrastructure; Nuclear, Security & Environmental; Oil, Gas & Chemicals; and Mining & Metals. Our company and our culture are built on more than a century of leadership and a relentless adherence to our values, the core of which are safety, quality, ethics, and integrity. These values are what we believe, what we expect, what we deliver, and what we live. www.bechtel.com.

Revenue of $90.2 million compared to $61.6 million, an increase of 46%

Fully diluted GAAP EPS was $0.10 per share compared to $0.15 per share

Adjusted EPS of $0.22, unchanged

Non-GAAP adjusted EBITDA increased 32%

Positive book to bill ratio* of 1.06

* New orders (bookings) over revenue (billings)

"We are pleased with our second quarter results. The positive book to bill ratio and healthy backlog position us well as we enter the seasonally strong winter months. Results from our Thermon Heating Systems ("THS") acquisition continue to meet our expectations. Based on our strong performance for the first half of Fiscal 2019, we are increasing our previously reported Fiscal 2019 revenue guidance," said Bruce Thames, Thermon's President and Chief Executive Officer.

During Q2 2019, the Company generated revenue of $90.2 million versus $61.6 million in Q2 2018, an increase of $28.5 million or 46%. Organic (excluding THS) revenue was $70.8 million and revenue from THS was $19.4 million in Q2 2019. During Q2 2019, organic (excluding THS) Greenfield and MRO/UE (facility maintenance, repair and operations and upgrade or expansion) activity accounted for 31% and 69% of revenue, respectively. Substantially all of the revenue contributed by THS would be considered MRO/UE.

Organic orders were $78.3 million compared to $72.6 million in Q2 2018, an increase of $5.7 million or 8%

Total backlog was $149.6 million compared to $121.1 million in Q2 2018

Organic backlog was $122.8 million compared to $121.1 million in Q2 2018, an increase of $1.7 million or 1%

THS backlog was $26.8 million and THS orders were $17.5 million

Q2 2019 net income attributable to Thermon and GAAP earnings per share ("EPS") were $3.2 million and $0.10 per fully diluted common share, respectively, compared to $4.8 million and $0.15 per fully diluted common share, respectively, in Q2 2018. GAAP EPS was negatively impacted by $2.4 million or $0.07 of additional interest expense, net of tax, related to the THS acquisition. GAAP EPS was also negatively impacted by $0.02 related to changes in U.S. tax law. After taking into account the impact of intangible amortization and costs related to the THS acquisition in Q2 2018 (see table, Reconciliation of Net Income attributable to Thermon to Adjusted Net Income and Adjusted EPS), the Company generated Adjusted Net Income in Q2 2019 of $7.4 million and Adjusted EPS of $0.22 per fully diluted common share compared to $7.3 million and $0.22 per fully diluted common share, respectively, in Q2 2018.

Adjusted EBITDA was $17.9 million in Q2 2019 as compared to $13.5 million in Q2 2018, an increase of $4.4 million or 32%.

During the first six months of the fiscal year ending March 31, 2019 ("YTD 2019"), the Company generated revenue of $179.1 million compared to $113.4 million in the first six months of the fiscal year ended March 31, 2018 ("YTD 2018"), an increase of $65.7 million or 58%. Organic revenue was $140.9 million and revenue from THS was $38.2 million in YTD 2019.

YTD 2019 orders were $169.7 million compared to $127.7 million in YTD 2018, an increase of $42.0 million or 33%.

YTD 2019 net income attributable to Thermon and GAAP EPS were $6.3 million and $0.19 per fully diluted common share, respectively compared to $5.3 million and $0.16 per fully diluted common share in YTD 2018. After taking into account certain one-time charges in YTD 2019, costs related to the THS acquisition in YTD 2018 and the impact of intangible amortization (see table, Reconciliation of Net Income attributable to Thermon to Adjusted Net Income and Adjusted EPS), the Company generated Adjusted Net Income in YTD 2019 of $15.2 million and Adjusted EPS of $0.46 per fully diluted common share compared to Adjusted Net Income of $10.0 million and Adjusted EPS of $0.31 per fully diluted common share during YTD 2018.

As of September 30, 2018, the Company had $222.0 million gross of outstanding debt and $28.5 million of cash representing net debt of $193.5 million. Based on our trailing twelve month Adjusted EBITDA (pro forma for the THS acquisition) of the combined businesses, our net debt to trailing twelve month Adjusted EBITDA ratio was 2.4 at September 30, 2018. During Q2 2019, Thermon purchased one-half of the outstanding non-controlling interest related to the previous acquisition of Sumac Fabrication Co. Ltd. (now called Thermon Power Solutions) for $5.7 million.

Outlook

Based on our strong performance during the first half of Fiscal 2019, we are increasing our previously reported full-year revenue guidance. We now anticipate total revenue for the combined business to increase to an estimated range of $379.0 million to $390.0 million for Fiscal 2019. We expect organic revenue to grow 10% to 12% compared to Fiscal 2018. We maintain our expectation that THS revenue will contribute between $85.0 million to $90.0 million for Fiscal 2019.

Conference Call and Webcast Information

Thermon's senior management team, including Bruce Thames, President and Chief Executive Officer, and Jay Peterson, Chief Financial Officer, will discuss Q2 2019 results during a conference call today at 10:00 a.m. (Central Time), which will be simultaneously webcast on Thermon's investor relations website located at http://ir.thermon.com. Investment community professionals interested in participating in the question-and-answer session may access the call by dialing (877) 407-5976 from within the United States/Canada and (412) 902-0031 from outside of the United States/Canada. A replay will be available on Thermon's investor relations website after the conclusion of the call.

Disclosure in this release of "Adjusted EPS," "Adjusted EBITDA," "Adjusted Net Income" and "Free cash flow," which are "non-GAAP financial measures" as defined under the rules of the Securities and Exchange Commission (the "SEC"), are intended as supplemental measures of our financial performance that are not required by, or presented in accordance with, U.S. generally accepted accounting principles ("GAAP"). "Adjusted Net Income" and "Adjusted fully diluted earnings per share (or EPS)" represents net income attributable to Thermon before costs related to the consolidation of our operating footprint in Canada, amortization of other intangible assets and the income tax effect of any non-tax adjustments, per fully-diluted common share in the case of Adjusted EPS. "Adjusted EBITDA" represents net income attributable to Thermon before interest expense (net of interest income), income tax expense, depreciation and amortization expense, stock-based compensation expense, income attributable to non-controlling interests,and costs related to the consolidation of our operating footprint in Canada. "Free cash flow" represents cash provided by operating activities less cash used for the purchase of property, plant and equipment, net of sales of rental equipment and proceeds from sales of land and buildings.

We believe these non-GAAP financial measures are meaningful to our investors to enhance their understanding of our financial performance and are frequently used by securities analysts, investors and other interested parties to compare our performance with the performance of other companies that report Adjusted EPS, Adjusted EBITDA, or Adjusted Net Income. Adjusted EPS, Adjusted EBITDA and Adjusted Net Income should be considered in addition to, not as substitutes for, income from operations, net income, net income per share and other measures of financial performance reported in accordance with GAAP. We provide Free cash flow as a measure of our liquidity. Our calculation of Adjusted EPS, Adjusted EBITDA, Adjusted Net Income and Free cash flow may not be comparable to similarly titled measures reported by other companies. For a description of how Adjusted EPS, Adjusted EBITDA, Adjusted Net Income, and Free cash flow are calculated and reconciliations to the corresponding GAAP measures, see the sections of this release titled "Reconciliation of Net Income attributable to Thermon Adjusted EBITDA," "Reconciliation of Net Income attributable to Thermon to Adjusted Net Income and Adjusted EPS" and "Reconciliation of Cash Provided by Operating Activities to Free Cash Flow."

Forward-Looking Statements

This release may include forward-looking statements within the meaning of the U.S. federal securities laws in addition to historical information. These forward-looking statements include, without limitation, statements regarding our industry, business strategy, plans, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources and other financial and operating information. When used, the words "anticipate," "assume," "believe," "budget," "continue," "contemplate," "could," "should" "estimate," "expect," "intend," "may," "plan," "possible," "potential," "predict," "project," "will," "would," "future," and similar terms and phrases are intended to identify forward-looking statements in this release. Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Some of these expectations may be based upon assumptions, data or judgments that prove to be incorrect. In addition, our business and operations involve numerous risks and uncertainties, many of which are beyond our control, which could result in our expectations not being realized or otherwise materially affect our financial condition, results of operations and cash flows.

Actual events, results and outcomes may differ materially from our expectations due to a variety of factors. Although it is not possible to identify all of these factors, they include, among others, (i) general economic conditions and cyclicality in the markets we serve; (ii) future growth of energy, chemical processing and power generation capital investments; (iii) our ability to deliver existing orders within our backlog; (iv) our ability to bid and win new contracts; (v) competition from various other sources providing similar heat tracing and process heating products and services, or alternative technologies, to customers; (vi) changes in relevant currency exchange rates; (vii) potential liability related to our products as well as the delivery of products and services; (viii) our ability to comply with the complex and dynamic system of laws and regulations applicable to domestic and international operations; (ix) our ability to protect data and thwart potential cyber attacks; (x) our ability to continue to generate sufficient cash flow to satisfy our liquidity needs; (xi) a material disruption at any of our manufacturing facilities; (xii) our dependence on subcontractors and suppliers; (xiii) our ability to obtain standby letters of credit, bank guarantees or performance bonds required to bid on or secure certain customer contracts; (xiv) our ability to attract and retain qualified management and employees, particularly in our overseas markets; (xv) changes in costs of raw materials; (xvi) our ability to develop and market new products; (xvii) the extent to which federal, state, local, and foreign governmental regulations of energy, chemical processing and power generation products and services limits or prohibits the operation of our business; and (xviii) other factors discussed in more detail under the caption "Risk Factors" in our Annual Report on Form 10-K/A for the fiscal year ended March 31, 2018, as filed with the Securities and Exchange Commission on June 8, 2018. Any one of these factors or a combination of these factors could materially affect our financial condition, results of operations and cash flows and could influence whether any forward-looking statements contained in this release ultimately prove to be accurate.

Our forward-looking statements are not guarantees of future performance, and actual results and future performance may differ materially from those suggested in any forward-looking statements. We do not intend to update these statements unless we are required to do so under applicable securities laws.

Weighted-average shares used in computing net income per common share:

Basic common shares

32,572

32,408

32,537

32,413

Fully-diluted common shares

33,103

32,790

32,971

32,717

September 30, 2018 (unaudited)

March 31, 2018

Cash

$

28,481

$

33,879

Total debt

221,984

217,033

Total equity

337,140

340,853

Thermon Group Holdings, Inc. and Subsidiaries

Reconciliation of Net Income attributable to Thermon to Adjusted EBITDA

(Unaudited, in Thousands)

Three

Months

Ended

September 30, 2018

Three

Months

Ended

September 30, 2017

Six

Months

Ended

September 30, 2018

Six

Months

Ended

September 30, 2017

GAAP net income attributable to Thermon

$

3,227

$

4,778

$

6,269

$

5,257

Interest expense, net

3,937

548

7,465

1,197

Income tax expense

1,756

1,688

2,972

1,915

Depreciation and amortization expense

7,770

4,892

15,826

9,544

EBITDA (non-GAAP)

$

16,690

$

11,906

$

32,532

$

17,913

Stock compensation expense

1,085

947

2,089

1,732

Consolidation of operating footprint in Canada

—

—

757

—

Income attributable to non-controlling interests

98

300

434

535

Acquisition related expenses

—

339

—

339

Adjusted EBITDA (non-GAAP)

$

17,873

$

13,492

$

35,812

$

20,519

Thermon Group Holdings, Inc. and Subsidiaries

Reconciliation of Net Income attributable to Thermon to Adjusted Net Income and Adjusted EPS

(Unaudited, in Thousands except per share amounts)

Three

Months

Ended

September 30, 2018

Three

Months

Ended

September 30, 2017

Six

Months

Ended

September 30, 2018

Six

Months

Ended

September 30, 2017

Adjustment to:

GAAP net income attributable to Thermon

$

3,227

$

4,778

$

6,269

$

5,257

Consolidation of operating footprint in Canada

—

—

757

—

Operating expense

Acquisition related expenses

—

339

—

339

Operating expense

Amortization of intangible assets

5,496

3,022

11,273

5,961

Intangible asset amortization

Tax effect of adjustments

(1,356

)

(837

)

(3,087

)

(1,568

)

Adjusted net income (non-GAAP)*

$

7,367

$

7,302

$

15,212

$

9,989

Adjusted-fully diluted earnings per common share (non-GAAP)*

$

0.22

$

0.22

$

0.46

$

0.31

Fully-diluted common shares

33,103

32,790

32,971

32,717

* Please note that the Company now presents Non-GAAP Adjusted Net Income and Non-GAAP Adjusted EPS to take into account the impact of intangible amortization. The impact of amortization (net of tax) to Non-GAAP Adjusted EPS was $0.12 and $0.24 per share during the three and six months ended September 30, 2018 and $0.09 and $0.18 per share during the three and six months ended September 30, 2017, respectively.

]]>Thermon Schedules Second Quarter Fiscal 2019 Earnings Conference Call - October 31, 2018https://ir.thermon.com/news/detail/82/thermon-schedules-second-quarter-fiscal-2019-earnings-conference-call---october-31-2018
Fri, 26 Oct 2018 16:15:00 -0400https://ir.thermon.com/news/detail/82/thermon-schedules-second-quarter-fiscal-2019-earnings-conference-call---october-31-2018SAN MARCOS, TX / ACCESSWIRE / October 26, 2018 /Thermon Group Holdings, Inc. (NYSE: THR) ("Thermon") will issue a press release reporting its consolidated financial results for the second quarter of the fiscal year ending March 31, 2019 before the market opens on Wednesday, October 31, 2018. Following the earnings release, members of the senior management team, including Bruce Thames, President and Chief Executive Officer and Jay Peterson, Chief Financial Officer, will host a conference call at 10:00 a.m. (Central Time), which will be simultaneously webcast on Thermon's investor relations website (http://ir.thermon.com). Investment community professionals interested in participating in the question-and-answer session may access the call by dialing (877) 407-5976 from within the United States/Canada and (412) 902-0031 from outside of the United States/Canada.

Clickherefor direct access to the webcast or to add the event to your calendar. A replay of the webcast will be available on Thermon's investor relations website after the conclusion of the call.

Revenue of $88.9 million compared to $51.7 million, an increase of 72%

Fully diluted GAAP EPS was $0.09 per share compared to $0.01

Non-GAAP Adjusted EPS* was $0.24 per share, an increase of 200% compared to $0.08

Adjusted EBITDA as a percentage of revenue was 20% compared to 14%, an increase of 43%

* Please note that the Company now presents Non-GAAP Adjusted EPS to take into account the impact of intangible amortization. See the table "Reconciliation of Net Income attributable to Thermon to Adjusted Net Income and Adjusted EPS" for an explanation of the adjustments.

"We are extremely pleased with the strong start to our fiscal year. We experienced growth in all geographies of our business and organic revenue growth of 36% over Q1 2018. The inorganic revenue contribution of $18.8 million from Thermon Heating Systems ("THS") was also solid, especially considering the lower seasonality. In view of our first quarter financial performance, we are updating our Fiscal 2019 guidance. We now expect that our organic revenue will increase approximately 7% to 10% in Fiscal 2019 and that the Company's consolidated revenues will grow approximately 20% to 24% in Fiscal 2019," said Bruce Thames, Thermon's President and Chief Executive Officer.

During Q1 2019, the Company generated revenue of $88.9 million versus $51.7 million in Q1 2018, an increase of $37.2 million or 72%. Organic revenue was $70.1 million and revenue from THS was $18.8 million in Q1 2019. During Q1 2019, organic Greenfield and MRO/UE (facility maintenance, repair and operations and upgrade or expansion) activity accounted for 45% and 55% of revenue, respectively. Substantially all of the revenue contributed by THS would be considered MRO/UE.

Gross margin during Q1 2019 was 44.7% compared to 46.0% in Q1 2018. Gross margin was negatively impacted by a higher mix of Greenfield project revenue relative to Q1 2018.

Order and backlog levels during Q1 2019 were as follows:

Total orders were $73.8 million versus $55.1 million in Q1 2018

Organic orders were $57.2 million compared to $55.1 million in Q1 2018, an increase of $2.1 million or 4%

Total backlog was $144.1 million compared to $110.2 million in Q1 2018

Organic backlog was $115.1 million compared to $110.2 million in Q1 2018, an increase of $4.9 million or 4%

THS backlog was $29.0 million

Q1 2019 net income attributable to Thermon and GAAP EPS were $3.0 million and $0.09 per fully diluted common share, respectively, compared to $0.5 million and $0.01 per fully diluted common share, respectively, in Q1 2018. After taking into account certain one-time charges related to the consolidation of our operating footprint in Canada and the impact of intangible amortization related to prior acquisition activities (see table, Reconciliation of Net Income attributable to Thermon to Adjusted Net Income and Adjusted EPS), the Company generated Adjusted Net Income in Q1 2019 of $7.8 million and Adjusted EPS of $0.24 per fully diluted common share compared to $2.6 million and $0.08 per fully diluted common share, respectively, in Q1 2018.

Adjusted EBITDA was $17.9 million in Q1 2019 as compared to $7.0 million in Q1 2018, an increase of $10.9 million or 155%.

As of June 30, 2018, the Company had $229.9 million gross outstanding debt and $31.1 million of cash representing net debt of $198.8 million. Based on the trailing twelve month Adjusted EBITDA of the combined businesses, our net debt to trailing twelve month Adjusted EBITDA ratio was 2.5 at June 30, 2018. At the time the THS acquisition closed on October 30, 2017, our net debt to trailing twelve month Adjusted EBITDA ratio was 3.4.

Outlook

We anticipate total revenue for the combined business will increase to an estimated range of $371.0 million to $384.0 million for Fiscal 2019. We expect organic revenue to grow 7% to 10% compared to Fiscal 2018. In addition, we expect THS revenue contribution between $85.0 million to $90.0 million for Fiscal 2019.

Conference Call and Webcast Information

Thermon's senior management team, including Bruce Thames, President and Chief Executive Officer, and Jay Peterson, Chief Financial Officer, will discuss Q1 2019 results during a conference call today at 10:00 a.m. (Central Time), which will be simultaneously webcast on Thermon's investor relations website located at http://ir.thermon.com. Investment community professionals interested in participating in the question-and-answer session may access the call by dialing (877) 407-5976 from within the United States/Canada and (412) 902-0031 from outside of the United States/Canada. A replay will be available on Thermon's investor relations website after the conclusion of the call.

Disclosure in this release of "Adjusted EPS," "Adjusted EBITDA," "Adjusted Net Income" and "Free cash flow," which are "non-GAAP financial measures" as defined under the rules of the Securities and Exchange Commission (the "SEC"), are intended as supplemental measures of our financial performance that are not required by, or presented in accordance with, U.S. generally accepted accounting principles ("GAAP"). "Adjusted Net Income" and "Adjusted fully diluted earnings per share (or EPS)" represents net income attributable to Thermon before costs related to the consolidation of our operating footprint in Canada, amortization of other intangible assets and the income tax effect on any non-tax adjustments, per fully-diluted common share in the case of Adjusted EPS. "Adjusted EBITDA" represents net income attributable to Thermon before interest expense (net of interest income), income tax expense, depreciation and amortization expense, stock-based compensation expense, income attributable to non-controlling interests, and costs related to the consolidation of our operating footprint in Canada. "Free cash flow" represents cash provided by operating activities less cash used for the purchase of property, plant and equipment, net of sales of rental equipment and proceeds from sales of land and buildings.

We believe these non-GAAP financial measures are meaningful to our investors to enhance their understanding of our financial performance and are frequently used by securities analysts, investors and other interested parties to compare our performance with the performance of other companies that report Adjusted EPS, Adjusted EBITDA, or Adjusted Net Income. Adjusted EPS, Adjusted EBITDA and Adjusted Net Income should be considered in addition to, not as substitutes for, income from operations, net income, net income per share and other measures of financial performance reported in accordance with GAAP. We provide Free cash flow as a measure of our liquidity. Our calculation of Adjusted EPS, Adjusted EBITDA, Adjusted Net Income and Free cash flow may not be comparable to similarly titled measures reported by other companies. For a description of how Adjusted EPS, Adjusted EBITDA, Adjusted Net Income, and Free cash flow are calculated and reconciliations to the corresponding GAAP measures, see the sections of this release titled "Reconciliation of Net Income attributable to Thermon Adjusted EBITDA," "Reconciliation of Net Income attributable to Thermon to Adjusted Net Income and Adjusted EPS" and "Reconciliation of Cash Provided by Operating Activities to Free Cash Flow."

Forward-Looking Statements

This release may include forward-looking statements within the meaning of the U.S. federal securities laws in addition to historical information. These forward-looking statements include, without limitation, statements regarding our industry, business strategy, plans, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources and other financial and operating information. When used, the words "anticipate," "assume," "believe," "budget," "continue," "contemplate," "could," "should" "estimate," "expect," "intend," "may," "plan," "possible," "potential," "predict," "project," "will," "would," "future," and similar terms and phrases are intended to identify forward-looking statements in this release. Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Some of these expectations may be based upon assumptions, data or judgments that prove to be incorrect. In addition, our business and operations involve numerous risks and uncertainties, many of which are beyond our control, which could result in our expectations not being realized or otherwise materially affect our financial condition, results of operations and cash flows.

Actual events, results and outcomes may differ materially from our expectations due to a variety of factors. Although it is not possible to identify all of these factors, they include, among others, (i) general economic conditions and cyclicality in the markets we serve; (ii) future growth of energy, chemical processing and power generation capital investments; (iii) our ability to deliver existing orders within our backlog; (iv) our ability to bid and win new contracts; (v) competition from various other sources providing similar heat tracing and process heating products and services, or alternative technologies, to customers; (vi) changes in relevant currency exchange rates; (vii) potential liability related to our products as well as the delivery of products and services; (viii) our ability to comply with the complex and dynamic system of laws and regulations applicable to domestic and international operations; (ix) our ability to protect data and thwart potential cyber attacks; (x) our ability to continue to generate sufficient cash flow to satisfy our liquidity needs; (xi) a material disruption at any of our manufacturing facilities; (xii) our dependence on subcontractors and suppliers; (xiii) our ability to obtain standby letters of credit, bank guarantees or performance bonds required to bid on or secure certain customer contracts; (xiv) our ability to attract and retain qualified management and employees, particularly in our overseas markets; (xv) changes in costs of raw materials; (xvi) our ability to develop and market new products; (xvii) the extent to which federal, state, local, and foreign governmental regulations of energy, chemical processing and power generation products and services limits or prohibits the operation of our business; and (xviii) other factors discussed in more detail under the caption "Risk Factors" in our Annual Report on Form 10-K/A for the fiscal year ended March 31, 2018, as filed with the Securities and Exchange Commission on June 8, 2018. Any one of these factors or a combination of these factors could materially affect our financial condition, results of operations and cash flows and could influence whether any forward-looking statements contained in this release ultimately prove to be accurate.

Our forward-looking statements are not guarantees of future performance, and actual results and future performance may differ materially from those suggested in any forward-looking statements. We do not intend to update these statements unless we are required to do so under applicable securities laws.

Weighted-average shares used in computing net income per common share:

Basic common shares

32,501

32,370

Fully-diluted common shares

32,936

32,861

June 30, 2018 (unaudited)

March 31, 2018

Cash

$

31,118

$

33,879

Total debt

229,825

225,000

Total equity

336,439

340,853

Thermon Group Holdings, Inc. and Subsidiaries

Reconciliation of Net Income attributable to Thermon to Adjusted EBITDA

(Unaudited, in Thousands)

Three

Months

Ended

June 30, 2018

Three

Months

Ended

June 30, 2017

GAAP net income attributable to Thermon

$

3,042

$

479

Interest expense, net

3,527

649

Income tax expense

1,217

227

Depreciation and amortization expense

8,057

4,652

EBITDA (non-GAAP)

$

15,843

$

6,007

Stock compensation expense

1,004

785

Consolidation of operating footprint in Canada

757

—

Income attributable to non-controlling interests

336

235

Adjusted EBITDA (non-GAAP)

$

17,940

$

7,027

Thermon Group Holdings, Inc. and Subsidiaries

Reconciliation of Net Income attributable to Thermon to Adjusted Net Income and Adjusted EPS

(Unaudited, in Thousands except per share amounts)

Three Months

Ended

June 30, 2018

Three Months

Ended

June 30, 2017

Adjustment to:

GAAP net income attributable to Thermon

$

3,042

$

479

Consolidation of operating footprint in Canada

757

—

Operating expense

Amortization of intangible assets

5,777

2,939

Intangible amortization

Tax effect of adjustments

(1,731)

(794)

Adjusted net income (non-GAAP)*

$

7,845

$

2,624

Adjusted-fully diluted earnings per common share (non-GAAP)*

$

0.24

$

0.08

Fully-diluted common shares

32,936

32,861

* Please note that the Company now presents Non-GAAP Adjusted Net Income and Non-GAAP Adjusted EPS to take into account the impact of intangible amortization. The impact of amortization (net of tax) to Non-GAAP Adjusted EPS was $0.13 and $0.07 per share in Q1 2019 and Q1 2018, respectively.

]]>Thermon Schedules First Quarter Fiscal 2019 Earnings Conference Call - August 1, 2018https://ir.thermon.com/news/detail/80/thermon-schedules-first-quarter-fiscal-2019-earnings-conference-call---august-1-2018
Mon, 30 Jul 2018 13:30:00 -0400https://ir.thermon.com/news/detail/80/thermon-schedules-first-quarter-fiscal-2019-earnings-conference-call---august-1-2018SAN MARCOS, TX / ACCESSWIRE / July 30, 2018 / Thermon Group Holdings, Inc. (NYSE: THR) ("Thermon") will issue a press release reporting its consolidated financial results for the first quarter of the fiscal year ending March 31, 2019 before the market opens on Wednesday, August 1, 2018. Following the earnings release, members of the senior management team, including Bruce Thames, President and Chief Executive Officer and Jay Peterson, Chief Financial Officer, will host a conference call at 10:00 a.m. (Central Time), which will be simultaneously webcast on Thermon's investor relations website (http://ir.thermon.com). Investment community professionals interested in participating in the question-and-answer session may access the call by dialing (877) 407-5976 from within the United States/Canada and (412) 902-0031 from outside of the United States/Canada.

Fully diluted GAAP EPS for Q4 2018 was $0.18 per share, an increase of 80% compared to $0.10

Non-GAAP Adjusted EPS* for Q4 2018 was $0.34 per share, an increase of 113% compared to $0.16

Executed optional debt prepayment of $25.0 million or 10% of aggregate principal

*Please note that the Company now presents Non-GAAP Adjusted EPS to include the impact of intangible amortization. See the table "Reconciliation of Net Income attributable to Thermon to Adjusted Net Income and Adjusted EPS" for an explanation of the adjustments.

"We are pleased with the progress of the integration of the THS business and with its financial performance, which exceeded expectations in the first five months of ownership. Our organic business had a strong fourth quarter as well, with sales increasing 15%, operating income increasing 78% and backlog remaining near historic record levels. As we move past the peak heating season into lower seasonality of the summer months, we are encouraged by the strength of our backlog. Looking forward to the upcoming fiscal year, we anticipate that the combined organization will grow top-line revenue approximately 17% to 20% compared to Fiscal 2018," said Bruce Thames, Thermon's President and Chief Executive Officer.

During Q4 2018, the Company generated revenue of $102.6 million versus $67.6 million in Q4 2017, an increase of $35.0 million or 52%. Organic revenue was $77.6 million and revenue from THS was $25.0 million in Q4 2018. During Q4 2018, organic Greenfield and MRO/UE (facility maintenance, repair and operations and upgrade or expansion) activity accounted for 42% and 58% of revenue, respectively. Most of the revenue contributed by THS would be considered MRO/UE.

Q4 2018 orders were $94.5 million versus $69.4 million in Q4 2017, an increase of $25.1 million or 36%. In Q4 2018, organic orders were $72.9 million and orders from THS were $21.6 million. Q4 2018 backlog of $159.6 million represents a $52.7 million increase, or 49%, over Q4 2017 backlog of $106.9 million. For Q4 2018, organic backlog was $128.0 million and backlog from THS was $31.7 million.

Q4 2018 net income attributable to Thermon and GAAP EPS were $6.1 million and $0.18 per fully diluted common share, respectively, compared to $3.3 million and $0.10 per fully diluted common share, respectively, in Q4 2017. After taking into account certain one-time charges (see table, Reconciliation of Net Income attributable to Thermon to Adjusted Net Income and Adjusted EPS), the Company generated Adjusted Net Income (former presentation) in Q4 2018 of $7.1 million and Adjusted EPS (former presentation) of $0.22 per fully diluted common share compared to $3.3 million and $0.10 per fully diluted common share, respectively, in Q4 2017.

With the recent THS acquisition, we will incur incremental intangible amortization for the foreseeable future. Combined with the legacy Thermon business, intangible amortization increased to $5.7 million in Q4 2018 from $3.0 million in Q4 2017. The impact of intangible amortization, net of tax, to GAAP EPS was $0.12 and $0.06 in Q4 2018 and Q4 2017, respectively. Accordingly, Adjusted EPS (new presentation) was $0.34 and $0.16 in Q4 2018 and Q4 2017, respectively. See the table "Reconciliation of Net Income attributable to Thermon to Adjusted Net Income and Adjusted EPS" for an explanation of the adjustments.

Adjusted EBITDA was $22.6 million in Q4 2018 as compared to $10.4 million in Q4 2017, an increase of $12.2 million or 117%. THS contributed $7.7 million to Adjusted EBITDA in Q4 2018.

In Fiscal 2018, the Company generated revenue of $308.6 million compared to $264.1 million in Fiscal 2017, an increase of $44.5 million or 17%. Organic revenue was $267.6 million and revenue from THS was $41.0 million in Fiscal 2018. Gross margin during Fiscal 2018 was 46.6% compared to 42.4% in Fiscal 2017. Organically, our mix of Greenfield and MRO/UE sales was 37% and 63% in Fiscal 2018 compared to 39% and 61% in Fiscal 2017, respectively. Fiscal 2018 orders were $327.5 million versus $289.8 million in Fiscal 2017, an increase of $37.7 million or 13%. In Fiscal 2018, organic orders were $288.5 million and orders from THS were $39.0 million.

Fiscal 2018 net income attributable to Thermon and GAAP EPS were $11.9 million and $0.36 per fully diluted common share, respectively, compared to $14.6 million and $0.45 per fully diluted common share, respectively, in Fiscal 2017. After taking into account certain one-time charges (see table, Reconciliation of Net Income attributable to Thermon to Adjusted Net Income and Adjusted EPS), the Company generated Adjusted Net Income (former presentation) in Fiscal 2018 of $20.7 million and Adjusted EPS (former presentation) of $0.63 per fully diluted common share compared $14.1 million and $0.43 per fully diluted common share, respectively, during Fiscal 2017.

Intangible amortization was $16.4 million in Fiscal 2018 compared to $11.8 million in Fiscal 2017. The impact of intangible amortization, net of tax, to GAAP EPS was $0.36 and $0.25 in Fiscal 2018 and Fiscal 2017, respectively. Accordingly, Adjusted EPS (new presentation) was $0.99 and $0.68 in Fiscal 2018 and Fiscal 2017, respectively. See the table "Reconciliation of Net Income attributable to Thermon to Adjusted Net Income and Adjusted EPS" for an explanation of the adjustments.

Adjusted EBITDA was $64.8 million in Fiscal 2018 as compared to $43.3 million in Fiscal 2017, an increase of $21.5 million or 50%. THS contributed $12.2 million to Adjusted EBITDA in Fiscal 2018.

During Q4 2018, the Company made an optional debt prepayment of $25 million, or 10% of the original aggregate principal amount of $250 million. As of March 31, 2018, the Company's net debt (outstanding debt principal less cash on hand) was 2.6 times trailing twelve months Adjusted EBITDA. This compares to a net debt to Adjusted EBITDA ratio of 3.4 at the time the THS acquisition closed on October 30, 2017.

Outlook

We anticipate total revenue for the combined business to reach $360.0 million to $370.0 million for the fiscal year ending March 31, 2019 ("Fiscal 2019"). We expect organic revenue to grow 3% to 5% compared to Fiscal 2018. In addition, we expect THS revenue contribution between $85.0 million to $90.0 million for Fiscal 2019.

Conference Call and Webcast Information

Thermon's senior management team, including Bruce Thames, President and Chief Executive Officer, and Jay Peterson, Chief Financial Officer, will discuss Q4 2018 and full fiscal 2018 results during a conference call today at 10:00 a.m. (Central Time), which will be simultaneously webcast on Thermon's Investor Relations website located at http://ir.thermon.com. Investment community professionals interested in participating in the question-and-answer session may access the call by dialing (877) 312-5421 from within the United States/Canada and (253) 237-1121 from outside of the United States/Canada. A replay of the webcast will be available on Thermon's Investor Relations website beginning two hours after the conclusion of the call.

About Thermon

Through its global network, Thermon provides highly engineered thermal solutions, known as heat tracing, and complementary products and services for process industries, including energy, chemical processing, and power generation. Thermon's products provide an external heat source to pipes, vessels and instruments for the purposes of freeze protection, temperature maintenance, environmental monitoring and surface snow and ice melting. Thermon is headquartered in San Marcos, Texas. For more information, please visit www.thermon.com.

Non-GAAP Financial Measures

Disclosure in this release of "Adjusted EPS," "Adjusted EBITDA," "Adjusted Net Income," "Free cash flow" and "Return on equity," which are "non-GAAP financial measures" as defined under the rules of the Securities and Exchange Commission (the "SEC"), are intended as supplemental measures of our financial performance that are not required by, or presented in accordance with, the U.S. generally accepted accounting principles ("GAAP"). "Adjusted Net Income" and "Adjusted fully diluted earnings per share (or EPS)" represents net income attributable to Thermon before acquisition-related expenses, a one-time loss on certain foreign currency hedges entered into in connection with the THS acquisition, a one-time repatriation tax on deferred foreign income as a result of the tax reform legislation, adjustments to our deferred tax liability for a tax rate change, amortization of other intangible assets and the income tax effect on any non-tax adjustments, per fully-diluted common share in the case of Adjusted EPS. "Adjusted EBITDA" represents net income attributable to Thermon before interest expense (net of interest income), income tax expense, depreciation and amortization expense, stock-based compensation expense, income attributable to non-controlling interests, acquisition-related expenses and a one-time loss on certain foreign currency hedges entered into in connection with the THS acquisition. "Return on equity" for the three month periods ended March 31, 2018, and 2017, represents Adjusted EBITDA for each respective period that is multiplied by four to represent a full year's results, divided by the average of total equity at March 31 and December 31 for each respective period. "Return on equity" for the year ended March 31, 2018 and 2017, represents Adjusted EBITDA for each respective year, divided by the average of total equity for each respective fiscal year. We believe that the average total equity properly accounts for net income that occurred during the three months and years ended March 31, 2018 and 2017. "Free cash flow" represents cash provided by operating activities less cash used for the purchase of property, plant and equipment, net of sales of rental equipment and proceeds from sales of land and buildings.

We believe these non-GAAP financial measures are meaningful to our investors to enhance their understanding of our financial performance and are frequently used by securities analysts, investors and other interested parties to compare our performance with the performance of other companies that report Adjusted EPS, Adjusted EBITDA, Adjusted Net Income or Return on equity. Adjusted EPS, Adjusted EBITDA, Adjusted Net Income and Return on equity should be considered in addition to, not as substitutes for, income from operations, net income, net income per share and other measures of financial performance reported in accordance with GAAP. We provide Free cash flow as a measure of our liquidity. Our calculation of Adjusted EPS, Adjusted EBITDA, Adjusted Net Income, Free cash flow and Return on equity may not be comparable to similarly titled measures reported by other companies. For a description of how Adjusted EPS, Adjusted EBITDA, Adjusted Net Income, Return on equity and Free cash flow are calculated and reconciliations to the corresponding GAAP measures, see the sections of this release titled "Reconciliation of Net Income attributable to Thermon Adjusted EBITDA and Return on Equity," "Reconciliation of Net Income attributable to Thermon to Adjusted Net Income and Adjusted EPS" and "Reconciliation of Cash Provided by Operating Activities to Free Cash Flow."

Forward-Looking Statements

This release may include forward-looking statements within the meaning of the U.S. federal securities laws in addition to historical information. These forward-looking statements include, without limitation, statements regarding our industry, business strategy, plans, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources and other financial and operating information. When used, the words "anticipate," "assume," "believe," "budget," "continue," "contemplate," "could," "should" "estimate," "expect," "intend," "may," "plan," "possible," "potential," "predict," "project," "will," "would," "future," and similar terms and phrases are intended to identify forward-looking statements in this release. Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Some of these expectations may be based on assumptions, data or judgments that prove to be incorrect. In addition, our business and operations involve numerous risks and uncertainties, many of which are beyond our control, which could result in our expectations not being realized or otherwise materially affect our financial condition, results of operations and cash flows.

Actual events, results, and outcomes may differ materially from our expectations due to a variety of factors. Although it is not possible to identify all of these factors, they include, among others, (i) general economic conditions and cyclicality in the markets we serve; (ii) future growth of energy, chemical processing and power generation capital investments; (iii) our ability to deliver existing orders within our backlog; (iv) our ability to bid and win new contracts; (v) competition from various other sources providing similar heat tracing and process heating products and services, or alternative technologies, to customers; (vi) changes in relevant currency exchange rates; (vii) potential liability related to our products as well as the delivery of products and services; (viii) our ability to comply with the complex and dynamic system of laws and regulations applicable to domestic and international operations; (ix) our ability to protect data and thwart potential cyber attacks; (x) our ability to continue to generate sufficient cash flow to satisfy our liquidity needs; (xi) a material disruption at any of our manufacturing facilities; (xii) our dependence on subcontractors and suppliers; (xiii) our ability to obtain standby letters of credit, bank guarantees or performance bonds required to bid on or secure certain customer contracts; (xiv) our ability to attract and retain qualified management and employees, particularly in our overseas markets; (xv) changes in costs of raw materials; (xvi) our ability to develop and market new products; (xvii) the extent to which federal, state, local, and foreign governmental regulations of energy, chemical processing and power generation products and services limits or prohibits the operation of our business; and (xviii) other factors discussed in more detail under the caption "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018, to be filed with the Securities and Exchange Commission on or prior to May 30, 2018. Anyone of these factors or a combination of these factors could materially affect our financial condition, results of operations and cash flows and could influence whether any forward-looking statements contained in this release ultimately prove to be accurate.

Our forward-looking statements are not guarantees of future performance, and actual results and future performance may differ materially from those suggested in any forward-looking statements. We do not intend to update these statements unless we are required to do so under applicable securities laws.

SAN MARCOS, Texas, March 22, 2018 (GLOBE NEWSWIRE) -- Thermon Group Holdings, Inc. (NYSE:THR) (the "Company") today announced that Linda A. Dalgetty has been appointed to its boards of directors (the "Board"), effective May 1, 2018.

Ms. Dalgetty, age 56, is currently Vice President, Finance and Services at the University of Calgary, a public research university, a position she has held since July 2014. In her role at the University of Calgary, she has direct responsibility for a large portfolio that includes finance, human resources, information technology, risk, ancillary operations and internal audit. Prior to joining the University of Calgary in 2014, Ms. Dalgetty served as Senior Vice President and Chief Financial Officer of Saxon Energy Services, Inc. from 2013 to 2014, during which time she was responsible for all of the financial functions of a global organization, including reporting, planning, operational accounting and information technology. Prior to her role at Saxon, Ms. Dalgetty served from 1995 to 2013 in various roles of increasing responsibility at Nutrien Ltd. (formerly, Agrium Inc. ("Agrium")) and Agroservicios Pampeanos SA (a wholly-owned Argentine subsidiary of Agrium), with her final role being Agrium's Chief Information Officer. Ms. Dalgetty began her early career working as an audit manager with Ernst & Young LLP from 1989 to 1995. Ms. Dalgetty holds a bachelor of commerce degree from the Haskayne School of Business at the University of Calgary. She is also a chartered accountant and earned an associate diploma in agribusiness from the University of Guelph. Ms. Dalgetty brings broad-based North American and international financial expertise and business experience to the Board. In addition, Ms. Dalgetty has led crisis management efforts related to cybersecurity matters.

"We are pleased to welcome Linda as a new independent director and believe she will be a significant asset to the Board," said Bruce Thames, President and Chief Executive Officer. "Our Board, via the nominating and corporate governance committee, regularly evaluates Board and committee composition to ensure it includes the appropriate skills, experience, perspective and diversity necessary to drive growth for our shareholders. We believe Linda will offer unique perspectives, international insights and financial literacy and expertise that will be invaluable as we grow. We are honored that she has agreed to serve on our Board.”

Following Ms. Dalgetty's appointment, Thermon's Board will be comprised of 9 directors, 8 of whom are independent. The Company expects Ms. Dalgetty to serve on the Company's audit and nominating and corporate governance committees.